EUR/USD Price Forecast – Euro Gives Up Early Gains
The Euro has gone back and forth during the course of the trading session on Monday, showing signs of hesitancy yet again. At this point time, the market is likely to continue going lower, as the Euro has been getting hammered for a while. Quite frankly, the divergence between the Federal Reserve and the European Central Bank will continue to be a major driver, as well as the fact that money continues to flow into the US indices overall.
EUR/USD Video 16.11.21
To the downside, we could be looking at a move towards the 1.1250 level, with the 1.15 level above offering resistance. The 50 day EMA is sitting just above the 1.16 handle, so if we were to break above there, it would be a significant turnaround for the markets overall. With this being the case, I think that we would continue to see a lot of upward momentum if we were to finally get above there. At this point though, that looks to be very unlikely, and I think the selling of short-term rallies continues to be the best way we go.
Your capital is at risk
With this being the case, I think that the market should continue to behave the way it did last week, although not necessarily as brutal of a selloff as we had seen. Remember, the Euro tends to be relatively quiet for most of its trades, and then suddenly gets a significant push in one direction or the other. In other words, most of trading the Euro is waiting for momentum to finally pick back up. You have to be patient, but I still think that the Euro is going to continue to drift lower.
For a look at all of today’s economic events, check out our economic calendar.